Sep. 5, 2013

Robert Davis of Highland Park, Mich. speaks to members of the media in 2012. / PATRICIA BECK/Detroit Free Press

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Detroit Free Press Staff Writer

Dan Gilbert

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The issue over whether Greektown Casino owner Dan Gilbert violated state law when a political action committee associated with his company gave thousands of dollars to Detroit candidates became more complex Thursday as union activist Robert Davis called for the immediate revocation of Gilbert’s gaming license.

“Certainly no one could use the name of Quicken Loans Corp. without his permission and direction,” Davis said Thursday.

State gaming laws prevent casino licensees from donating to political campaigns, and Davis said a $34,000 donation from Quicken Loans PAC to mayoral candidate Mike Duggan should not have been made. But Davis also said Quicken’s PAC gave money to other political candidates, including Detroit City Council President Saunteel Jenkins, council members James Tate and Andre Spivey and Michigan Attorney General Bill Schuette. Davis said he filed a complaint with the Michigan Gaming Control Board, following in the footsteps of former Detroit mayoral candidate Tom Barrow.

Gilbert founded Quicken Loans. A spokeswoman for him released a statement from Lennise Stephens of the Midwest Strategy Group, a lobbying firm that administers the Quicken Loans PAC, saying Davis’ claim is “baseless and has no merit.”

“There is no violation of any Michigan gaming law or regulation,” the statement said. “The PAC in question is an independent legal entity. In addition, no person regulated by the Michigan Gaming Control Board (MGCB) has contributed to this PAC during calendar years 2011, 2012 or 2013. Likewise, no person regulated by the MGCB is an officer or director of the PAC.”

The Michigan Gaming Control Board confirmed Thursday afternoon that it received the complaint “alleging political contributions by a Quicken Loans PAC. The complaint is currently under investigation, and we are unable to comment during the investigative process,” a spokesman for the board said.

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Davis’ announcement comes after the Free Press reported Wednesday that Quicken took back an $80,000 donation to Turnaround Detroit, a super PAC that has been supportive of Duggan but is not controlled by or directly associated with him.

“It is totally illegal,” Davis said, adding that state law says that in such cases, a casino owner’s “license shall be revoked by the Michigan Gaming Control Board. There’s no discretion.”

Records filed by the Michael Duggan for Mayor Committee confirm the Quicken Loans PAC donated $34,000 to Duggan’s committee. Duggan spokesman John Roach said the campaign had not received a request to have that donation returned.

The records show 18 people identified as employees of Quicken Loans donated the maximum $3,400 allowed under Michigan law. Combined with other Quicken employees who donated smaller amounts, Gilbert’s workers donated at least $61,375 directly to Duggan’s mayoral committee. Altogether, cash from Quicken workers and the Quicken PAC made up the largest bloc of Duggan’s financial supporters, according to campaign records.

Davis’ complaint doesn’t address the donations made by individual Quicken employees, but such past donations have raised the ire of gaming regulators and the Michigan Secretary of State’s Office.

In 2006, state elections officials forced then-Detroit Mayor Kwame Kilpatrick’s re-election committee to return $42,500 in donations from 14 people linked to casino operations or buildings. Some of the donations were from employees or owners of companies that had contracts with the casinos, including Ferguson Enterprises, owned by Bobby Ferguson, the Kilpatrick friend who is awaiting a retrial on bid-rigging charges. He also is awaiting sentencing on convictions in the Kilpatrick public corruption trial.

The state said at the time that Michigan’s Gaming Control and Revenue Act aims to prevent most people with stakes in casino businesses from trying to influence people in positions of regulatory or political power. The law applies to state and local elections, but not federal candidates or campaigns.

“The Quicken PAC is a lawful PAC that has contributed to several candidates,” Hollowell said. “We are confident that there is no problem with the legality of this donation.”

Duggan raised almost $1.2 million in the first half of this year compared with about $605,000 for mayoral candidate Wayne County Sheriff Benny Napoleon. That pace has continued, with the Duggan campaign reporting in post-primary finance documents that $440,000 was raised between July 22 and Aug. 26 compared to $122,000 reported by Napoleon in the same period. Duggan and Napoleon face off Nov. 5.